Gabriel Resources completes initial close of US$2.32M private placement

Gabriel Resources Ltd. (TSXV: GBU) has completed the initial closing of a non-brokered private placement, issuing 39,909,296 units to Electrum Global Holdings L.P. and Paulson & Co. Inc. for aggregate subscriptions of approximately US$2.32 million (approximately C$3.29 million), according to a company statement.

The offering is priced at C$0.0825 per unit, with each unit consisting of one common share and one warrant exercisable at C$0.11 per share for five years following issuance. The total offering targets up to 58,471,757 units for aggregate subscriptions of up to US$3.4 million.

Of the US$2.32 million raised in the initial closing, US$745,634 came from cash subscriptions before transaction expenses, while US$1,575,000 was satisfied by offsetting outstanding bridge-loan principal and accrued interest. The debt settlement fully repaid and discharged bridge loans that Electrum and Paulson advanced on April 28, 2026. A total of 27,086,182 units, split equally between the two lenders, were attributed to the debt settlement.

Net cash proceeds will be used for working capital and essential operations, including the company's pursuit of an application to annul an ICSID arbitration award rendered on March 8, 2024.

The participation of Electrum and Paulson constitutes a related party transaction under Multilateral Instrument 61-101. The company relied on financial difficulty exemptions from formal valuation and minority approval requirements.

Securities issued are subject to a Canadian hold period expiring February 17, 2027. The TSX Venture Exchange has granted conditional acceptance, with final acceptance still pending.

Gabriel Resources expects to complete subsequent closings in October 2026 for Swiss Capital S.A. and other eligible investors, covering the remaining 18,562,461 units representing approximately US$1.08 million in additional subscriptions.

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